Calgary Developments Inc. sold a parcel from its inventory of land to Larson Corporation on June $1,$

In exchange, Larson Corporation signed a $4-$year promissory note with annual interest

payments. Other information pertaining to this transaction follows:

Cost of the land to Calgary Developments inc.

Face value of the note

Larson Corporation typically borrows funds at the following rate

The promissory note requires annual interest payments at the following rate

Larson Corporation will make interest payments on May $31$ of each year.

Calgary Developments follows IFRS and has a year end of May $31.$

Required:

Calculate the present value of the note and prepare the journal entries for Calgary

Developments to account for the sale of the land. $(4$ marks$)$

Prepare an amortization schedule for the note. $(2$ marks$)$

Prepare journal entries for Calgary Developments on May $31,2026.(2$ marks$)$